Many in Their 40s and 50s Hold Over 1 Billion Won in Shares... A Look at Stock Holdings Among Samsung and SK Executives

Non-Owner Executives With Over 1 Billion Won in Stock Holdings
Surge 11.7 Times in 10 Months
Expansion of Treasury Share Incentive Payments Drives Growth
Roh Taemoon Tops the List With Over 30 Billion Won

Nearly 400 non-owner executives hold shares worth at least 1 billion won at listed subsidiaries of Korea’s top four conglomerates, with over 90% of them belonging to Samsung Electronics and SK hynix.

On August 31, the Korea CXO Institute, a corporate analysis specialist, released the results of its survey titled "Status of the Ten Billion Club for Non-Owner Executives at Listed Subsidiaries of the Top Four Conglomerates." The research, based on the semiannual reports of 62 listed subsidiaries from Samsung, SK, Hyundai Motor, and LG—the top four business groups by fair asset size according to the Fair Trade Commission—applied the closing prices as of August 24 to calculate executive stock holdings.

The survey found that there were 398 non-owner executives whose share valuations exceeded 1 billion won. The total combined stock wealth of these executives reached 1.05 trillion won. By conglomerate, Samsung accounted for 269 people, or 67.6% of the total, with SK Group at 122 people, or 30.7%. Combined, the two groups represented 391 executives, or 98.2% of the total. In stark contrast, Hyundai Motor Group had only 4, and LG Group just 3, indicating a significant gap.

By company, the concentration was particularly pronounced at Samsung Electronics and SK hynix. Samsung Electronics had 256 qualifying executives, while SK hynix had 107; together, the two companies accounted for 363 people, or 91.2% of the total. Despite the recent decline in stock prices, the sharp increase in the number of treasury shares paid as incentives and long-term compensation packages led to a rise in executive shareholdings, which in turn boosted their stock wealth. The number of "Ten Billion Club" executives at these two firms surged 11.7 times over 10 months—from just 31 in October of last year to the current figure.

There are 12 executives in the so-called “Hundred Billion Club,” with shareholdings valued at over 10 billion won. Topping the list is Roh Tae-moon, President of Samsung Electronics, who owns 124,280 shares of Samsung Electronics, worth 31.94 billion won, making him the only non-owner executive in the top four conglomerates with over 30 billion won in shares. Next are Kwak Nojeong, President of SK hynix, who holds 23.92 billion won in shares, and Song Jaeseung, Chief Investment Officer (CIO) at SK Square, whose holdings are worth 18.31 billion won. Park Hakkyu, President of Samsung Electronics, and Seo Dongkwon, Executive Director at Hyundai AutoEver, followed in the rankings.

By age group, those born in 1970–1971 were the most numerous, with 109 executives, including two who were born in the 1980s.

O Ilsun, Head of the Korea CXO Institute, commented, “As an increasing number of companies move toward paying some performance-based incentives in stock, the compensation and asset-building methods for large corporation executives are likely to shift rapidly from being cash-centered to including stocks.” He added, “Typically, companies can tie long-term performance and corporate value to employee compensation through stock awards, but executives and employees will now also bear the risk of asset value decline if share prices fall. The appropriate proportion of stock-based incentives is likely to become a new topic of negotiation between labor and management.”

This content was produced with the assistance of AI translation services.